CAF-8 · Chapter 16 · Question 6 of 14
During a review engagement of interim financial statements, the practitioner is completely unable to obtain sufficient appropriate evidence because management refuses to provide key accounting records. If the practitioner concludes the possible effects are both material and pervasive, what is the required reporting action?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Disclaim a conclusion on the financial statements.
Explanation
If the practitioner is unable to form a conclusion due to an inability to obtain sufficient appropriate evidence, and the possible effects of undetected misstatements could be both material and pervasive, ISRE 2400 requires the practitioner to disclaim a conclusion.
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